Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivatives on a Gross Basis

The tables below present the gross fair value and the notional amounts of derivative contracts by major product type, the amounts of counterparty and cash collateral netting in the consolidated balance sheets, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting under U.S. GAAP.


	Fair Value as of December

	2025				2024
$ in millions	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Not accounted for as hedges
Exchange-traded	$	2,976	$	1,217	$	2,706	$	1,068
OTC-cleared	4,961		4,854		1,746		2,428
Bilateral OTC	153,595		116,061		152,083		121,515
Total interest rates	161,532		122,132		156,535		125,011
OTC-cleared	2,684		2,973		1,787		1,893
Bilateral OTC	11,091		11,162		9,650		8,137
Total credit	13,775		14,135		11,437		10,030
Exchange-traded	126		14		142		6
OTC-cleared	1,210		1,064		1,325		993
Bilateral OTC	78,403		82,468		112,838		113,608
Total currencies	79,739		83,546		114,305		114,607
Exchange-traded	8,597		8,788		5,563		5,917
OTC-cleared	640		804		558		650
Bilateral OTC	7,863		9,924		7,205		7,958
Total commodities	17,100		19,516		13,326		14,525
Exchange-traded	53,564		91,084		55,049		83,475
OTC-cleared	33		55		189		131
Bilateral OTC	34,101		60,422		24,941		44,900
Total equities	87,698		151,561		80,179		128,506
Subtotal	359,844		390,890		375,782		392,679
Accounted for as hedges
OTC-cleared	17		49		–		–
Bilateral OTC	164		7		201		8
Total interest rates	181		56		201		8
OTC-cleared	30		5		114		3
Bilateral OTC	25		263		255		5
Total currencies	55		268		369		8
Subtotal	236		324		570		16
Total gross fair value	$	360,080	$	391,214	$	376,352	$	392,695

Offset in the consolidated balance sheets
Exchange-traded	$	(58,701)	$	(58,701)	$	(57,776)	$	(57,776)
OTC-cleared	(8,925)		(8,925)		(4,867)		(4,867)
Bilateral OTC	(193,549)		(193,549)		(218,269)		(218,269)
Counterparty netting	(261,175)		(261,175)		(280,912)		(280,912)
OTC-cleared	(109)		(424)		(412)		(105)
Bilateral OTC	(45,843)		(45,210)		(47,689)		(36,698)
Cash collateral netting	(45,952)		(45,634)		(48,101)		(36,803)
Total amounts offset	$	(307,127)	$	(306,809)	$	(329,013)	$	(317,715)

Included in the consolidated balance sheets
Exchange-traded	$	6,562	$	42,402	$	5,684	$	32,690
OTC-cleared	541		455		440		1,126
Bilateral OTC	45,850		41,548		41,215		41,164
Total	$	52,953	$	84,405	$	47,339	$	74,980

Not offset in the consolidated balance sheets
Cash collateral	$	(442)	$	(1,951)	$	(600)	$	(1,271)
Securities collateral	(20,965)		(8,910)		(14,938)		(8,731)
Total	$	31,546	$	73,544	$	31,801	$	64,978


	Notional Amounts as of December

$ in millions	2025		2024
Not accounted for as hedges
Exchange-traded	$	1,983,652	$	2,332,117
OTC-cleared	16,533,168		12,571,690
Bilateral OTC	10,705,896		10,569,501
Total interest rates	29,222,716		25,473,308
Exchange-traded	332		322
OTC-cleared	986,680		660,181
Bilateral OTC	758,385		619,068
Total credit	1,745,397		1,279,571
Exchange-traded	9,555		9,264
OTC-cleared	523,741		429,858
Bilateral OTC	7,192,306		6,031,944
Total currencies	7,725,602		6,471,066
Exchange-traded	366,003		324,159
OTC-cleared	2,710		3,087
Bilateral OTC	186,420		183,174
Total commodities	555,133		510,420
Exchange-traded	2,327,060		1,868,855
OTC-cleared	1,062		1,475
Bilateral OTC	1,634,183		1,256,905
Total equities	3,962,305		3,127,235
Subtotal	43,211,153		36,861,600
Accounted for as hedges
OTC-cleared	294,278		246,765
Bilateral OTC	1,157		3,588
Total interest rates	295,435		250,353
OTC-cleared	6,105		5,041
Bilateral OTC	18,188		10,328
Total currencies	24,293		15,369


Subtotal	319,728		265,722
Total notional amounts	$	43,530,881	$	37,127,322

In the tables above:

•Gross fair values exclude the effects of both counterparty netting and collateral, and therefore are not representative of the firm’s exposure.

•Amounts presented for collateral not offset in the consolidated balance sheets consists of collateral received or posted in connection with OTC-cleared and bilateral OTC derivatives under enforceable credit support agreements that do not meet the criteria for netting under U.S. GAAP. In addition to collateral presented in the table above, the firm also posts or receives collateral in connection with its transactions with certain exchanges in accordance with the exchanges’ margin requirements. Such collateral may be calculated based on the firm’s total exposure to the respective exchange across all product types, including both derivative and non-derivative instruments. See Note 11 for further information.

•Substantially all of the gross fair value of derivatives relates to derivative contracts which are subject to enforceable netting agreements.

•Notional amounts, which represent the sum of gross long and short derivative contracts, provide an indication of the volume of the firm’s derivative activity and do not represent anticipated losses.

Credit Derivatives

The table below presents information about credit derivatives.


	Credit Rating of Underlier
$ in millions	Investment-Grade		Non-Investment- Grade/Unrated		Total
As of December 2025
Maximum Payout/Notional Amount of Written Credit Derivatives
By Product
Credit default swaps	$	536,846	$	124,330	$	661,176
Other credit derivatives	135,770		33,097		168,867
Total by product	$	672,616	$	157,427	$	830,043

By Maturity
Less than 1 year	$	184,830	$	37,484	$	222,314
1 - 5 years	447,318		109,387		556,705
Greater than 5 years	40,468		10,556		51,024
Total by maturity	$	672,616	$	157,427	$	830,043

Maximum Payout/Notional Amount of Purchased Credit Derivatives
Offsetting	$	549,513	$	127,807	$	677,320
Other	188,117		49,917		238,034
Total	$	737,630	$	177,724	$	915,354



Fair Value of Written Credit Derivatives
Asset	$	6,169	$	4,040	$	10,209
Liability	1,345		2,153		3,498
Net asset/(liability)	$	4,824	$	1,887	$	6,711
As of December 2024
Maximum Payout/Notional Amount of Written Credit Derivatives
By Product
Credit default swaps	$	357,277	$	126,446	$	483,723
Other credit derivatives	68,493		49,278		117,771
Total by product	$	425,770	$	175,724	$	601,494

By Maturity
Less than 1 year	$	103,200	$	61,578	$	164,778
1 - 5 years	294,124		110,404		404,528
Greater than 5 years	28,446		3,742		32,188
Total by maturity	$	425,770	$	175,724	$	601,494

Maximum Payout/Notional Amount of Purchased Credit Derivatives
Offsetting	$	384,749	$	112,906	$	497,655
Other	88,342		92,080		180,422
Total	$	473,091	$	204,986	$	678,077



Fair Value of Written Credit Derivatives
Asset	$	4,351	$	2,832	$	7,183
Liability	663		2,081		2,744
Net asset/(liability)	$	3,688	$	751	$	4,439

In the table above:

•Beginning in the fourth quarter of 2025, to better align the presentation of credit derivatives with the firm's risk management framework, written and purchased credit derivatives are disaggregated based on the credit rating of the underlier. Previously, such derivatives were disaggregated based on the credit spread of the underlier. Prior period amounts have been conformed to the current presentation.

•Tenor is based on the remaining contractual maturity for all written credit derivatives as of December 2025 and substantially all written credit derivatives as of December 2024.

•Credit ratings are based on external credit ratings issued by credit rating agencies or internally determined credit agency equivalents where external credit ratings are not available.

•The credit rating of the underlier, together with the tenor of the contract, are indicators of payment/performance risk. The occurrence of a credit event is less likely where the derivative contract is investment-grade and the tenor is shorter.

•Offsetting purchased credit derivatives represent the notional amount of purchased credit derivatives that economically hedge written credit derivatives with identical underliers.

•Other purchased credit derivatives represent the notional amount of all other purchased credit derivatives not included in offsetting.

•Fair values exclude the effects of both netting of receivable balances with payable balances under enforceable netting agreements, and netting of cash received or posted under enforceable credit support agreements, and therefore are not representative of the firm’s credit exposure.

Schedule of Derivative Instruments

The table below presents information about CVA and FVA.


	Year Ended December

$ in millions	2025		2024		2023
CVA, net of hedges	$	142	$	187	$	(139)
FVA, net of hedges	151		142		131
Total	$	293	$	329	$	(8)

The table below presents information about net derivative liabilities under bilateral agreements (excluding collateral posted), the fair value of collateral posted and additional collateral or termination payments that could have been called by counterparties in the event of a one- or two-notch downgrade in the firm’s credit ratings.


	As of December

$ in millions	2025		2024
Net derivative liabilities under bilateral agreements	$	33,473	$	31,575
Collateral posted	$	36,201	$	20,262
Additional collateral or termination payments:
One-notch downgrade	$	224	$	315
Two-notch downgrade	$	1,797	$	1,200

Summary of Derivatives Bifurcated from their Related Borrowings

The table below presents the fair value and the notional amount of derivatives that have been bifurcated from their related borrowings.


	As of December

$ in millions	2025		2024
Fair value of assets	$	428	$	467
Fair value of liabilities	(304)		(175)
Net asset/(liability)	$	124	$	292
Notional amount	$	8,691	$	8,106

Gain (Loss) from Interest Rate Hedges and Related Hedged Items

The table below presents the gains/(losses) from interest rate and foreign exchange derivatives accounted for as hedges and the related hedged items.


	Year Ended December

$ in millions	2025		2024		2023
Interest Rate Hedges - Investments
Interest rate swaps	$	(535)	$	63	$	(109)
Hedged investments	557		(80)		111
Gains/(losses)	$	22	$	(17)	$	2

Interest Rate Hedges - Borrowings and deposits
Interest rate swaps	$	3,003	$	(581)	$	3,859
Hedged borrowings and deposits	(3,350)		181		(4,344)
Gains/(losses)	$	(347)	$	(400)	$	(485)

Foreign Currency Hedges - Investments
Foreign currency forward contracts	$	(397)	$	91	$	(127)
Hedged investments	419		(85)		125
Gains/(losses)	$	22	$	6	$	(2)

Summary of Carrying Amount of Hedged Items and Gains/(Losses) from Net Investment Hedging

The table below presents the carrying value of investments, deposits and unsecured borrowings that are designated in an interest rate hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values.


$ in millions	Carrying Value		Cumulative Hedging Adjustment
As of December 2025
Assets
Investments	$	42,449	$	244

Liabilities
Deposits	$	762	$	(17)
Unsecured short-term borrowings	$	4,694	$	(25)
Unsecured long-term borrowings	$	143,082	$	(7,340)

As of December 2024
Assets
Investments	$	34,755	$	(279)

Liabilities
Deposits	$	1,840	$	(52)
Unsecured short-term borrowings	$	14,720	$	(113)
Unsecured long-term borrowings	$	130,161	$	(10,757)

In the table above:

•Cumulative hedging adjustment included $(4.61) billion as of December 2025 and $(5.81) billion as of December 2024 of hedging adjustments from prior hedging relationships that were de-designated and substantially all were related to unsecured long-term borrowings.

•The amortized cost of investments was $42.44 billion as of December 2025 and $35.29 billion as of December 2024.

The table below presents the gains/(losses) from the hedges in a net investment hedging relationship.


	Year Ended December

$ in millions	2025		2024		2023
Foreign currency forward contracts	$	(962)	$	1,064	$	(276)
Foreign currency-denominated debt	$	(2,571)	$	1,633	$	(550)

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details